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Strategic Ex-ante Contracts: Rent-Extraction and Opportunity Costs

Hua, Xinyu - Econometric Society - 2004

This paper considers the possibility that a seller can contract with one uninformed buyer prior to an auction involving two potential buyers. In a more general setting than previous literature, strategic ex-ante contracts not only extract rent from entrants, but could also mitigate the...

Persistent link: https://www.econbiz.de/10005130202

Search and Endogenous Intermediation: A Model of the Merchant Trader

Sengupta, Abhijit; Bose, Gautam - Econometric Society - 2004

Specialist merchants and traders---agents who mediate the transfer of goods and services between producers and consumers---are central to the economic process, but there are few theoretical models in which the institution of intermediation is an endogenous part of an equilibrium. This paper...

Persistent link: https://www.econbiz.de/10005702580

Welfare Properties of Network Bypass

Martin, Richard - Econometric Society - 2004

One result of the deregulation of utilities in New Zealand has been the bypass of existing networks. We investigate two cases of bypass in the distribution of natural gas, and compare the welfare properties of regulation vs.\ the `laissez-faire' equilibrium. We demonstrate that installing a...

Persistent link: https://www.econbiz.de/10005702578

A theory of consumer referral

Kim, Jeong-Yoo; Jun, Tackseung - Econometric Society - 2004

In this paper, we consider the network as an alternative trading environment to the market. The main distinctive feature of the network transaction is the dependence of buyers' purchasing behavior, which makes all consumers not equally valuable to a seller. We characterize the optimal behavior...

Persistent link: https://www.econbiz.de/10005702702

An Investigation of the Gains from Commitment in Monetary Policy

Tambalotti, Andrea; Schaumburg, Ernst - Econometric Society - 2004

degrees of credibility, in which commitment and discretion become special cases of what we call quasi commitment. The monetary … policy authority is assumed to formulate optimal commitment plans, to be tempted to renege on them, and to succumb to this … from commitment accrue at relatively low levels of credibility. In our benchmark calibration, a commitment expected to last …

Persistent link: https://www.econbiz.de/10005702683

Delegated Contracting and Corporate Hierarchies

Park, In-Uck; Choe, Chongwoo - Econometric Society - 2004

In a typical corporate hierarchy, the manager is delegated the authority to make decisions that set directions for the organization, employ subordinates and contract with external suppliers. This paper explains when such delegation of authority can be optimal, using a model of a firm with three...

Persistent link: https://www.econbiz.de/10005063551

Comparative Statics with Concave and Supermodular Functions

Quah, John K.-H. - Econometric Society - 2004

Certain problems in comparative statics, including (but not exclusively) certain problems in consumer theory, cannot be easily addressed by the methods of lattice programming. One reason for this is that there is no order on the choice space which orders choices in a way which conforms with the...

Persistent link: https://www.econbiz.de/10005063726

Product Market Competition and Productive Managerial Effort

Cho, Sungbin - Econometric Society - 2004

This paper analyzes a mechanism through which product market competition affects allocation of the managerial efforts. There are two types of firms, incumbents and entrants. Each incumbent firm delegates its control to a manager and cannot observe the manager's effort. The managers of incumbent...

Persistent link: https://www.econbiz.de/10005063759

Price Discrimination in the Steel Market

Rust, John; Chan, Hui Man; Hall, George - Econometric Society - 2004

This paper estimates a dynamic model of price discrimination and inventory investment under incomplete information. The model is motivated from an empirical analysis of operations of daily observations on inventories, sales, and purchases of over 2,300 individual products by a U.S. steel...

Persistent link: https://www.econbiz.de/10005130185

Imposing Curvature and Monotonicity on Flexible Functional Forms: An Efficient Regional Approach

Wolff, Hendrik; Heckelei, Thomas; Mittelhammer, Ron C. - Econometric Society - 2004

Abstract In many areas of economic analysis, economic theory restricts the shape as well as other characteristics of functions used to represent economic constructs. Obvious examples are the monotonicity and curvature conditions that apply to utility, profit, and cost functions. Commonly, these...

Persistent link: https://www.econbiz.de/10005342199